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Protecting your mortgage payments
What if the worst happens and you find yourself unemployed,
or you cannot work for a period of time because of medical
reasons?
Who will pay your mortgage and keep a roof over your
head?
Once upon a time the state paid the interest on your mortgage for you.
In 1995 however the government inmplemented a new system and
is now encouraging homebuyers to take private cover for
their mortgage payments.
This is called Mortgage Payment Protection Insurance
(MPPI) or sometimes
referred to as ASU ( accident sickness and unemployment insurance ).
The aim of MPPI is to cover your mortgage payments should you be made
redundant or fall ill and become unable to work. A policy should cover
the
mortgage interest and capital repayments along with any additional
mortgage related expenses such as buildings/contents insurance or any
savings/investment vehicle in place to repay capital.
Hang on I don't need this the government will pay if I
can't work! - WRONG
If you find yourself unemployed and took your mortgage
out after 1/10/95 you will recieve no help towards your mortgage
whatsoever for the first 9 months!! Most lenders would reposess
before things got that far.
If you took your mortgage out prior to 1995 you are in
a
slightly better position, you will recieve no help for the
first 2 months and then half your mortgage interest payments
will be made for 4 months after this your payments are made in full.
Click here to compare over 50 mortgage protection policies online
If you have any problems/queries please e-mail us at
YOUR HOME IS AR RISK IF YOU DO
NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT. ALL
LOANS ARE SUBJECT TO STATUS. SECURED LOANS ARE SECURED ON PROPERTY
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